Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $21,000 of legal services for a client. Manny typically requires his clients to pay his bills immediately upon receipt. Assume Manny's marginal tax rate is 37 percent this year and next year, and that he can earn an after-tax rate of return of 4 percent on his investments. Required: a. What is the after-tax income if Manny sends his client the bill in December? b. What is the after-tax income if Manny sends his client the bill in January? Use Exhibit 3.1. Note: Round your answer to the nearest whole dollar amount. c. Based on requirements a and b, should Manny send his client the bill in December or January? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the after-tax income if Manny sends his client the bill in December? After-tax income Required A Required B > Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $21,000 of legal services for a client. Manny typically requires his clients to pay his bills immediately upon receipt. Assume Manny's marginal tax rate is 37 percent this year and next year, and that he can earn an after-tax rate of return of 4 percent on his investments. Required: a. What is the after-tax income if Manny sends his client the bill in December? b. What is the after-tax income if Manny sends his client the bill in January? Use Exhibit.3.1. Note: Round your answer to the nearest whole dollar amount. c. Based on requirements a and b, should Manny send his client the bill in December or January? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the after-tax income if Manny sends his client the bill in January? Use Exhibit 3.1. Note: Round your answer to the nearest whole dollar amount. After-tax income Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $21,000 of legal services for a client. Manny typically requires his clients to pay his bills immediately upon receipt. Assume Manny's marginal tax rate is 37 percent this year and next year, and that he can earn an after-tax rate of return of 4 percent on his investments. Required: a. What is the after-tax income if Manny sends his client the bill in December? b. What is the after-tax income if Manny sends his client the bill in January? Use Exhibit 3.1. Note: Round your answer to the nearest whole dollar amount. c. Based on requirements a and b, should Manny send his client the bill in December or January? Complete this question by entering your answers in the tabs below. Required A Required B Required C Based on requirements a and b, should Manny send his client the bill in December or January? EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return 4% 5% 6% 7% Year 1 0.962 0.952 0.943 0.935 Year 2 0.925 0.907 0.890 0.873 Year 3 0.889 0.864 0.840 0.816 0.794 8% 9% 10% 11% 12% 0.926 0.917 0.909 0.901 0.893 0.857 0.842 0.826 0.812 0.797 0.772 0.751 0.731 0.712 Year 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 Year 5 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 Year 6 Year 7 Year 8 0.731 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 Year 9 Year 10 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 Year 11 0.650 0.585 0.527 0.475 0.429 Year 12 0.625 0.557 0.497 0.444 0.397 Year 13 0.601 0.530 0.469 0.415 0.388 0.350 0.317 0.287 0.356 0.368 0.326 0.319 0.286 0.257 0.290 0.258 0.229 Year 14 0.577 Year 15 0.555 0.481 0.417 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.362 0.315 0.275 0.239 0.209 0.183